Posted by Hải Âu (73..162.32) on July 24, 2022 at 08:25:49:
In Reply to: Re: Market next week ... 2 Mikey posted by :) on July 22, 2022 at 19:30:00:
Prices have discounted much bad news and sentiment [is at] rock-bottom," Hartnett said, referring to the more than 20% decline seen in the S&P 500 and Nasdaq 100 earlier this year.
But depressed sentiment doesn't represent an all clear for investors to fully jump back into the market, according to Hartnett, as big economic risks remain on the horizon. Those risks include still-hot inflation readings, rising interest rates, and the real chance of an economic recession.
Additionally, while investor sentiment is at depressed levels, actual fund flow data doesn't entirely back up those feelings. "Everyone [is] bearish but no one has sold," Hartnett said, highlighting that for every $100 of inflows into markets since the start of 2021, there has been just $3 worth of outflows from stocks.
And for those reasons, investors should take some risk off the table and sell stocks when the S&P 500 rises to 4,200, which represents potential upside of about 6% from current levels.
"Positioning closest to green light for risk appetite/trade higher, but profits and policy don't yet give green light for new bull trend; and don't think Wall Street unwinds financial excesses of past 13 years with a 6-month garden variety bear market," Hartnett said.